A default badly damages your credit score, so how long will it stay there?
That depends on what the default date is on your credit record.
In Britain, the credit record rules say:
the debt, including the default, is deleted from your credit record six years later after the first default.
A debt that is marked as defaulted will be deleted after six years in all the following situations:
- you have repaid the debt in full;
- you have made a partial settlement;
- you are still making monthly payments to it; or
- you haven’t made any payment to it for years.
There are no exceptions to this rule. So a debt with a default date in May 2016 will drop off your credit record in May 2022.
This means that the longer ago a default date is, the better because it will disappear sooner.
If you can get a creditor to change a default date from June 2019 to April 2017, the debt will disappear more than two years earlier.
So this article looks at what the default date should be.
Contents
When should a default date be added to a credit record?
SCOR, the industry forum that handles credit reporting, says :
As a general guide, [a default] may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.
There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.
Those are the main guidelines, but let’s look at specific situations.
Debt management plans and arrangements to pay
For situations where you miss a few payments, or make reduced payments, or enter a Debt Management Plan, the “3-6 months” guidance above applies.
If your arrears have already reached three months, then the lender can register a default, even if an arrangement to pay is then agreed or you pay the debt in full.
Arrears will usually continue to mount up when you have an arrangement to pay or a DMP, so later a default can be added even if you are making all the payments.
At the start of a DMP or an arrangement to pay you may not want a default – they do harm your credit score! But if you aren’t going to repay the debt in a few years, having a default is usually better because your credit score will clear up sooner. With no default date added, the record will stay until 6 years from the date the debt is finally settled which could be a long while.
So it can often be better to have a default early in a debt management plan rather than not have one – see this article on DMPs and Credit Ratings for some examples.
Overdrafts are more complicated – and defaults will be later
For most loans and credit cards the standard 3-6 month provisions apply – the common exception is current accounts.
There is no regular or minimum monthly payment to an overdraft, so the concept of “3-6 months in arrears” doesn’t really exist.
You may have abandoned an account with an overdraft and switched to using a different account. But unless you told the bank this or asked for an arrangement to repay it (for example in a debt management plan) or included the overdraft in a debt management plan, the bank may not have been able to tell.
So default dates for overdrafts can often be later than you would think.
Debt sold to a debt collector
When a debt is sold to a debt collector, the new creditor should use the same default date as the original creditor did.
If the original lender didn’t add a default, you can ask them to add one, then the debt collector will have to use that.
In the unusual case that the lender didn’t report to a credit reference agency at all, the debt collector should apply the same ICO rule that the original lender would have used.
CCJs
If you have had a CCJ registered for that debt, the default date must be earlier than the date of the CCJ.
The CCJ will stay on your credit record for 6 years, so the original debt will have dropped off before the CCJ goes.
Insolvency
If you have gone bankrupt, had an IVA or Debt Relief Order(DRO) then the default dates of the debts in your insolvency must not be later than the date the insolvency started.
This is covered in detail in these articles which tell you how to correct these problems after insolvency:
- Repair your credit record after Bankruptcy;
- Repair your credit record after an IVA;
- Repair your credit record after a DRO.
Mortgages
Mortgages and other secured loans are an exception to the general “3-6 months in arrears” guidelines. In 2007 the ICO issued technical guidance on Filing Defaults With Credit Reference Agencies, see paragraph 14 for this specific area.
A mortgage lender has much more discretion on when to record a default, but it should generally not be later than six months after any repossession.
Only the first default date for a debt matters
Once a debt has been marked as defaulted, your credit file will normally show a default marker every month until the debt is settled. That looks dreadful on your credit reports! But in the credit score calculations, it is only counted as one default.
So when people talk about “the default date for a debt”, it is the first default date that matters. Not the ones for later months. The whole debt will disappear six years after the first default.
What can you do if a default date looks wrong?
For some examples of how these principles have been applied in practice, see these case studies that the Financial Ombudsman has reported. They should give you a better feel for whether you can get your credit record changed.
To correct a problem with a default on your credit file you should write/email the lender (or the debt collection agency if your debt has been sold by the original lender), putting COMPLAINT as the subject, explaining why you think it is wrong.
Don’t just copy out the guidance above, add the facts and dates which relate to your specific case. Some common examples would be:
- “I first missed payments to this debt in early 2015 and set up an arrangement to pay in June 2015”,
- “I only made token payments from 2012”
- “This debt was included in my debt management plan with Stepchange in March 2017” etc.
Then say what you think should happen to your credit record, do you want it deleted, added, or changed to be earlier? For example:
- “Please delete the default date because I was never three months in arrears according to the ICO rules.”
- “You never contacted me to say the account was in arrears so it is unreasonable to have added a default. I had later accounts with you so you knew my contact details. I paid the debt as soon as I found out about it.”
- “I would like you to add a default date in November 2015 in accordance with the ICO rules.”
- “According to the ICO rules the default date of September 2017 is too late and I would like you to change it to May 2014.”
- “the other creditors in my debt management plan added defaults in 2014, they have since dropped off my credit record. You should be using that same date, so please correct it.”
The credit reference agencies only report what they are told by the creditors, so complain to the creditor not Experian etc.
If you haven’t had your complaint to the lender sorted within 8 weeks, send it to the Financial Ombudsman.
Here is an example of an Ombudsman decision telling Nationwide to backdate a default date.
Be careful – will doing this “reset the clock”?
If you haven’t made any payments to a debt for years and you are hoping it will get to the 6 years point so the debt is statute-barred, it is probably best not to contact the lender at all. If you ask them to change the default date then this will acknowledge the debt and “reset the clock”. See Questions about Statute-barred debt for more information as the conditions for some debts becoming statute-barred have changed in January 2019.
But also read No calls all letters about a debt for years? Is very common for you to be contacted about an old debt just a few months before it reaches the 6-year statute-barred point. So unless this is very close, it’s probably not worth hoping this will happen and it’s better to get the default date sorted.
If the debt is already statute-barred (are you absolutely sure? read the above article) then you can safely ask for the default date to be changed as once a debt is statute-barred it will always remain barred.
Important – sometimes a default is good news!
Defaults sound bad, right? So getting one removed must be good?
This is probably the most confusing thing of all, but No!
It can often be better to have a default on your credit record. If there is a default against a debt, then the whole debt will “drop off” your file after six years, even if you haven’t repaid the debt. With no default, the record will not go away until six years after it is marked as settled/satisfied in some way.
So don’t rush into trying to get a default removed… and never try to get a default date changed to a later one because it will wreck your credit record for longer!
Your credit record isn’t the only thing that matters
You may wonder why you should pay a debt at all if it will go from your credit record after 6 years if you don’t pay it. There are two good reasons:
- it stops the creditor going to court for a CCJ, which would harm your credit record for another 6 years
- seeing that problem debt is settled makes other lenders more likely to give you credit.
Your credit score improves when a defaulted debt disappears, but the debt still legally exist. See Do I have to pay a debt that isn’t on my credit record? for more details.
A credit record default is NOT the same as a “Default Notice”
This article has looked at when a creditor marks your debt as “in default” with one of the credit reference agencies.
Confusingly, the word “default” is also used in the term “Default Notice”. Under the Consumer Credit Act, a lender has to send you a Default Notice before taking you to court over an unpaid consumer credit debt such as a loan or a credit card. This has nothing to do with informing a credit reference agency that your debt is in default – your credit file may be marked as in default even if the creditor has no intention of taking court action.
If you have read things like the lender has to send you a Default Notice 14 days before starting court action and if you pay the debt in full within this time the lender can’t go to court these aren’t referring to credit records at all. Anywhere you read the phrase Default Notice you are probably looking at information about possible CCJs, not credit records.
How much will my credit score change if…
FAQs on statute barred debt
When can you get a default deleted?
Lola says
Hello,
I’m trying to re-mortgage at the moment to do some home improvements and pay off some credit card debt. 4 years ago I got made redundant and I had to contract for 2 years which really messed up my credit. I’m back permanently employed in a better job for the last two years all all my credit file is all green now apart from a default which was started in July 2018 for £152, I only knew about this last year when trying to re-mortgage, the default was fulled paid in Jan 22. I’m reading comments about having the default removed from my Experian report? can I do this so it doesn’t appear. what are the rules here? what can I do with this default? thank you… xx
Sara (Debt Camel) says
Can you say why you didn’t know about this before – were you never told by the lender that you owed money? This makes a difference to whether you may be able to get it removed. Also who was the lender?
Lola says
It was Clydesdale bank, now Barclays partner finance.. I really can’t remember being told about it… is it worth a bet asking to remove it?
Sara (Debt Camel) says
You can ask. Point out you paid it in full as soon you found out about it.
BUt by January 2023, this will be over a year since it was repaid. And the amount was very small. You may well be able to get a mortgage at an OK rate (well expensive, but thats because all mortgages have noow shot up) after January if you have a good deposit.
Kady says
Hello Sara,
I opened a Barclaycard account in 1999.
I missed 5 payments and they subsequently sent a Default Notice in September 2018 giving me a chance to remedy the breach but I did not do this.
So they defaulted the account in October 2018 after 6 missed payments.
I had sporadic missed payments during the 3 years before this time.
In November 2015, they had also sent a Default Notice after I had 3 missed payments.
I made payment a week after the remedy date and they obviously decided not to add a default to my credit files which at the time I was relieved about, but not so much now!
However, as the default is for a very large amount (13k) and still has 2 years remaining before it leaves my credit files, I was wondering if it would be possible to get it backdated to December 2015 because they had sent a Default Notice and I did not remedy the breach in time.
I have 1 other default dropping off my credit files in end January 2023, so getting this one removed would be great as my credit would then be clean.
In case it helps with anything, they sold the account to a DCA in November 2021, but they have admitted the account is unenforceable as they do not have the credit agreement as required.
Thank you for your time
Kady
Sara (Debt Camel) says
A Default Notice has, bizarrely, nothing to do with adding a default to your credit record.
A lender doesn’t have to add a default until you are 6 months in arrears.
You can ask Barclaycard to backdate the default, but they don’t have to do this.
Sam says
Once all the defaults fall off in 6/7 years, does that make it easier to get approved for renting a home etc? I know they’ve dropped off, but by dropped off, does that mean gone permanently from any credit checks… a clean slate.
Sara (Debt Camel) says
Have you cleared these debts?
Steve says
Hi Sara
I started a DAS agreement on 3 debts in December 2016, but the 3 debts have different default dates. One in 2017, one in 2019 and one in 2020. Am I entitled to ask all three to set the default date to the day I started my Debt Payment Plan in 2016? I still have just over 2 years to run on the DAS payment plan.
Thanks
Steve
Sara (Debt Camel) says
This is best answered by a Scottish adviser – I suggest you post the quesry in the comments on this page: https://www.advicescotland.com/home/debt-arrangement-scheme/
Gollums Twin says
Ok so not a Default marker but how many companies are doing this.
I have a loan with Lendable, into my 2nd year with it.
Payment £250 pcm on 25th each month.
Sep they took £250 and a further £175 two days later – I got the refunded under the DD guarantee.
Oct they did exactly the same – again refunded, and I told them I’m cancelling the DD and paying via their portal.
This month on the 20th I got a notification alert on my credit profile, and it was Lendable recording a missed payment.
Sign into the portal and it shows the 25th Nov payment as failed – 5 days before it’s due to go out.
Contacted Lendable who state that as there was no direct debit it is a failed payment as we call for DDs 5days in advance, and are refusing to remove this late payment marker.
Now despite paying on 24th (payday) they are still refusing to remove the marker.
Surely this shouldn’t be allowed? Recording fictional information and also punishing ppl who wish to pay via thier portal instead of DD?
Sara (Debt Camel) says
This doesn’t sound right at all.
Send them a complaint in writing (email complaint@lendable.co.uk) and say you paid through their portal by the due date – it is incorrect to record any missed payment on your credit record. If they reject this, send it to the Financial Ombudsman.
Also ask for compensation for this and the two previous DD errors. I suggest £200.
PS is this loan affordable? often horribly expensive borrowing… read https://debtcamel.co.uk/refunds-large-high-cost-loans/
H says
I got a ‘default notice’ today, which I was expecting because financially I’m in a bad place. I know this is bad, I’ve done all my research but unfortunately I can’t do anything until I get a job. If I don’t respond to this will it go to a collections agency or can they skip that and go straight for bailiffs, cc’js etc? It’s an Argos store card.
Sara (Debt Camel) says
Is this your only problem debt? Are you now getting Universal Credit? Are you behind with any important bills?
H says
Receiving standard universal credit and no unfortunately I have a few debts. All phone contracts now in payment plans with debt collectors. This is the only store card I have which will also be going into a plan. Then everything is in plans. No I’m not behind with any important bills. Just phone contracts and one store card.
H says
Basically it’s a notice of default from Argos financial. It’s going to default because I just can’t catch it. My mental health has been in decline for months, to the point I WANT it to go to a debt collector as bad as that is, it’s better for my health. When it defaults will it go to a collector or can they skip all that and go straight for bailiffs. I know not to open the door but it’s a huge fear
Edit\\\\ I just feel like it would be easier to end it all. I can get it all pain in 2 years but then in ten years when I fly the nest, I’m scared all these defaults and missed payments render me homeless
Sara (Debt Camel) says
Defaults are actually better for your credit record long term as they drop off your credit record sooner. A debt with a default drops off 6 years after the default, a debt with missed payments or a payment arrangement will only drop off 6 years after the debt is settled.
will it go to a collections agency
probably- they may sell it to a debt collector or pass it to a debt collector to collect on their behalf
or can they skip that and go straight for bailiffs, cc’js etc
They can’t send a bailiff unless there has been a CCJ.
They could go for a CCJ. But it’s rare for a lender to do this. Normally its only done for large business debts, guarantor loans or a few of the payday lenders. I would be astonished if Argos do.
H says
Hopefully it just goes to a collector then, like you said, you’d be astonished if Argos went straight for a CCJ but if they do, there’s nothing I can do about it. I’m going to stop worrying, enjoy my weekend and deal with it monday
Sam says
Hi Sarah,
I entered into a DMP with Stepchange and one of my debts was my shop direct account. I entered into the DMP 3.5 years ago.
Since I entered into the DMP interest has been frozen and my current balance is made up entirely of arrears.
Shop Direct have refused to apply a default and are keeping the account as arrangement to repay. I’ve approached the FOS but am not feeling hopeful after their investigator told me that Shop Direct have no legal obligation to apply a default.
Have you come across this with Shop Direct before? Seems strange all my other lenders defaulted me apart from them.
Sara (Debt Camel) says
I suggest you reply to the adjudicator that there is no legal obligation for SD to add a default but
1) it is in breach of the SCOR reporting rules which are industry good practice, and
2) it is treating you unfairly as you are being penalised by having your credit record being harmed for longer than if you had not paid SD anything.
Ask for the case to go to an Ombudsman if the adjudicator won’t change their mind.
Sam says
Thanks for that Sara,
Where would I find out more information on SCOR reporting rules?
Sara (Debt Camel) says
in the section of the above article headed When should a default date be added to a credit record?
Mark says
Hi Sam, I hope that you don’t mind me asking but did you follow up on this at all? My wife has the same issue. We both entered into a DMP in 2016 – defaulted debts have dropped off credit record, but for Shop Direct the same as you. We’re considering asking them to add old default date but worried they’ll add a present day one instead!
SamH says
Hi Sara, it’s daft but I’ve been waiting for my debts to default because I find it easier than dealing with a creditor. I’m aware these will drop off in 6 years. I pay the debt collectors monthly, not the creditors, the debt collectors. Will my defaults still drop in 6 years? Or have I added time to them by paying monthly? I really want to look at renting in 6-10 years time. Also, with my new job… in reality, I can start paying these off miles quicker (12-16 months I could be debt free) I don’t think this benefits my credit score… but it definitely benefits my mental health. Is it better for me to just keep paying monthly, save up for a year and clear the lot? I fear homelessness in the future. I can’t get credit at all right now and rightly so. Serves me right
Sara (Debt Camel) says
if a debt has defaulted, with a default showing on your credit record, that record will drop off 6 years after the default. Wehther it is still with the original lender or has been sold to a debt collector. Whether you are paying the lender, a debt collector collecting on behalf of the lender, or a debt collector that has bought it.
Will my defaults still drop in 6 years? Or have I added time to them by paying monthly?
They drop off if a default has been recorded. Not if it hasn’t. Paying them does not delay the drop off.
in reality, I can start paying these off miles quicker (12-16 months I could be debt free) I don’t think this benefits my credit score… but it definitely benefits my mental health.
you are right that it won’ty help the credit score you see (this is a mad system).
But it may make other lenders happier to lend to you knowing the debts have been settled.
Is it better for me to just keep paying monthly, save up for a year and clear the lot?
I suggest you carry on paying monthly and save up an emergency fund, so you don’t get into a mess again. Then increase the debt payments to clear them so that they are gone.
Sam says
Crazy how much you help me, mentally. It’s just nice hearing from someone who knows what they’re talking about.
Joanne says
I have just checked my credit file and a default was issued the first month after a missed payment. It was with Quickquid and then to Lantern which have have paid all off now. Could I get the default removed as it was applied after the first month?
Sara (Debt Camel) says
You then missed more months afterwards? Did you make a claim to the QQ administrators?
SamH says
Argos, I believe are issuing a default tomorrow. I knew it was coming, I’m just worried what steps they will take next? I want it to go to collectors ideally so I can set up a plan and the interest stops. Is that the likely steps a company would take. I’d rather it didn’t go to court, bailiffs etc. it’s not a priority bill, so you’d think next step would be a collections agency. Is that likely? I’m hoping I get a job soon, ideally will collections take any offer of payment, no matter how small, because I’m proactively trying to make things better?
Sara (Debt Camel) says
We had this discussion before…
I know you think collections agencies are easier to deal with, but why not just call Argos and offer £1 a month until you get a job?
Sam says
Did we? Sorry that’ll be the brain injury making me forget things here and there. That’s my fault. I’ll do that
sharon says
Hi
I’m a little confused about this 6yr rule.
I’ve been making very small payments to various debts for 20years, I’m not sure if they will ever be repayed in my life time and I’m now on UC with limited capability to work so extra funds are few and far between.
Does this statue barred 6yr thing apply to these debits. Most were credit cards and loans run up with my ex.
I’m reluctant to go bankrupt but if I have to I will but have fought so many years not too but I’m spiralling down.
Any advice is greatly recieved
S
Sara (Debt Camel) says
Does this statute barred 6yr thing apply to these debits
yes. these old debts will never become statute barred.
Are they all loans and credit cards? because there may be another option for you if they are…
Do you have any arrears on important bills eg energy, rent, counsil tax, water etc?
Antony says
I was with BT for 2 separate spells 2016 and 2018. Never missed a payment. Had a default notice (2016) for £37 from them in 2020. Challenged it via Experian and it was removed stating zero balance. . Another default notice this December with the date as 2019, same amount. Had my mortgage offer withdrawn at the last minute. Challenged it via Transunion and Experian and it was removed again. Complained to BT because they basically Ruined my Christmas and they’ve emailed me today saying: The team have advised that the default for £37.35 was accurately applied and still shows as outstanding, they advised the reason the marker was removed was due to the date being incorrectly recorded and as a result they removed the file completely.
I do not owe them anything. They’ve never told me I owe them anything and I’ve never had late payments, missed payments or anything of the sort on my credit file. I am really really stressed.
Sara (Debt Camel) says
Reply saying you do not owe them anything and ask for details of alledged default.
Antony Leach says
I’ve done that and they’ve changed the goal posts. I’ve requested all of the information from them. I feel like they’re going to do a job on me. Can they change a default date by 3 years Even though I owe them nothing and have never received a single letter from them?
Sara (Debt Camel) says
Have you sent them a Subject Access Request asking for literally all information that they have about you?
Antony Leach says
Via email today I asked for everything to be sent to me. I guess I’ll just have to wait and see. I’ll update you when I have it. I’m just worried they’re going to try to sting me with something. I’ve gone through all my bank statements from 2016-now. I’ve heard BT can be dodgy.
Rebecca says
Hi Sara,
In my twenties I struggled really bad with debt on multiple accounts. I setup a DMP with Stepchange in March 2018 after 3 months of missed payments. I finally cleared the total debt (£25k) in November 2022. I am looking into buying a property and i’m concerned about my credit score. I have noticed my (now settled) accounts have different default dates which is impacting the drop off date for these defaults. Would it be acceptable for me to contact the accounts and request the default date be changed to the start of the DMP date?
Sara (Debt Camel) says
Yes, give it a go.
Nicola says
Hello
Just desperately looking for help.
I have a default with quick quid that was sold to lantern.
I first started missing payments in August 2017 and missed payments all the way up until mid 2018 when i decided i wanted to get my finances in order and started making payments again .
In the meantime quick quid went under and sold all there debts to lantern who subsequently recorded a default as 2019 even though i didn’t make any payments for well over a year and should have defaulted in 2018.
I have tried to get them to change the default date but they are of no help.
I have tried the financial ombudsman who seem to always side with the big guys and have said the default can’t be changed and the only ones with that power are quick quid.
Is there anything else i can do ?
Thanks so much x
Sara (Debt Camel) says
did you make a claim to quickquid in administration?
Nicola martin says
Unfortunately no i didnt.
And i think this has probably shafted me
Last year i tried to contact the administrators but they had closed all further claims.
Sara (Debt Camel) says
have you had a final decision from the Ombudsman or was this just from an adjudicator?
Nicola martin says
Im not entirely sure ! do you know how i would find out ?
Sara (Debt Camel) says
Is this the first decision that you have had?
nicola martin says
Yes it is !
Sara (Debt Camel) says
Then this is an adjudicator decision. You should have been told you could ask for this to be looked at by the Ombudsman. Go back and explan QuickQuid are no longer in existence, it is against GDPR for you to have inaccurate information recorded on your credit record and QQ should have added a default after you had missed payments for 6 years. Point out that Lantern can set the default date earlier but they are choosing not to,
nicola martin says
Sorry Sara for sounding a bit dense but i just want to check that i definitely have been dealing with an Adjudicator.
This case was opened using the ombudsman case service and the replies are from an investigator is this the same as an Adjudicator ?
Sara (Debt Camel) says
yes, an Investigator is another name for an Adjudicator
nicola says
Okily will do :)
Would it be an option to have this default suppressed if this fails ?
Thanks
Sara (Debt Camel) says
Suppressed from QQ – yes. Supressed from Lantern – no.
Nicola says
Sorry to be a pest, the adjudicator is going to come back to me with his second view.
Do you know how many times this case can be looked at before being closed ?
Plus do you think it makes any difference that i dont actually recall getting a default notice from quick quid ?
I know im clutching at straws but really need this default changing.
Sara (Debt Camel) says
If the adjudicator wont change their mind, the case will go to the second level “Ombudsman decision” which will be final.
Legally a Default Notice has got nothing to do with a default on your credit record.
Nicola says
Do you know if a default date can be made later ? say from 2019 to 2020 ?
Sorry for all the questions but i just need to make sure im not making things worse.
Thanks for all your help
Sara (Debt Camel) says
I can’t remember that happening and there would have to be a VERY good reason for it.
Nicola says
Hi Sara
As suspected the adjudicator has not changed his view.
I have been looking at the FOS archive where past adjudicators have at least considered similar situations to mine do you think it would be worth forwading these cases to the ombudsman ?
Thanks
Sara (Debt Camel) says
The Ombudsman system isn’t based on “precedent” so showing these won’t necessarily help but I suppose you could try. They would have to be very similar. And cases which were won.
Nicola says
Thanks Sara
I am just a bit perplexed about what he has put in his summary :(
”I appreciate C’s frustration, however, the decision to default this account and the statutory requirements were the responsibility of OL not B. As OL no longer exists, both B and our service are unable to investigate this matter any further. C needed to raise this issue with OL before it ceased trading, however, she has brought this complaint to our service too late.”
Is this true that it is too late ? surely even if a company is disolved the company that now owns the debt has some responsibility ?
Sorry about my relentlessness with this case but i feel like im being penalised a bit.
Is there anything else i can add ?
Sara (Debt Camel) says
You can say that it is clear from your credit record that QQ made an error in not adding a default at the start of 1018 when you had missed 6 m=payments as the SCOL reporting guidelines chow. And that Lantern are still reporting the incorrect date which is not treating you failry and is against GDPR as your credit record should be accurate,
nicola says
do you know if he can refuse to let it be passed on to the ombudsman? he said he is going to close the file :(
Sara (Debt Camel) says
No he can’t
nic says
As stated, we cannot ask the business what if any repayment plan was in place and whether they gave any forbearance. As such, this does not change our position as you did enter a regular repayment plan at a later date and the consumer credit regulations state a business cannot default an account that is in a repayment plan. However, if a repayment is missed, the business can default the account. The evidence indicates this is what happened.
So, based on the available evidence, we cannot say that they should have defaulted you earlier. This would have been something you had to raise with the business. ”The only thing we could do is say to Lantern they should have defaulted it after purchase as it was clear you’re in arrears, but this would not be helpful as it would mean the default would be registered even later.”
I understand your frustration, but there is nothing I can do in this instance. I’ve confirmed the approach and sought guidance, so I cannot add anything further. he seems hellbent on not letting this go to an ombudsman
Please let me know by the deadline what you would like me to do. If I don’t hear back from you, I will need to close my file.
Sara (Debt Camel) says
Tell him that you would like the complaint to go to an Ombudsman.
Sharon says
Hi Sara,
I have two provident loans (satsuma) settled and p settled 21. The account was six months in arrears in 18 but NO default added. Loans were not deemed unaffordable in scheme and I didn’t appeal : ( I incorrectly believed that defaults were removed when loans where ceased in Dec 21 but defaults had never been added – can I used advice in article above to get default added by provident so loans come off in 24? Is this option still available now Satsuma has gone?
Sara (Debt Camel) says
It is a shame you didn’t appeal and say at that point that your credit record should be amended. That would have been much easier.
You can try to make a complaint to Provident now that a default should have been added. if you get no response after 8 weeks, you can try to use the procedure outlined here https://debtcamel.co.uk/correct-credit-records-lender-administration/ and say provident has failed to reply to your complaint.
Leanne says
Hello, I have a debt with a default date of the 10th February. It was bought by a debt collector and they have put the same default date as the original creditor thankfully. However; the original creditor also put date satisfied as the 20th June of the same year, although it wasn’t sold to the debt collector until a couple of years after that date. Will the default drop off my credit file from the default date or the satisfied date?
Sara (Debt Camel) says
6 years after the default date
Polly says
Hi Sara,
I have a debt that is with Drafty and have only paid off £40 over here past 3.5 years. Also nothing in the last 15 months no payment at all. They are refusing to apply a default. Anything I can do? I have asked them on numerous occasions to apply one and set up an arrangement plan but they refuse.
They keep transferring me to CRS who are a debt collection agency but cannot see it was sold to them.
Sara (Debt Camel) says
I suggest you send them an affordable complaint – this is an odd sort of debt and the best one to use if the payday loan template because of the repeat borrowing every month. See https://debtcamel.co.uk/unaffordable-car-finance/
Lots of wins against them. If you win they have to remove all negative marks from your credit record and the balance would be reduced (or cleared , depends on how much interest you have paid.)
If they reject it, send it to the Ombudsman.
If ultimately you lose, at that point ask them to correct your credit record with a default. And send that to the Ombudsman if they refuse.
Polly says
I sent a complaint for unaffordable lending to the ombudsman and for rejected even though had 4 other payday loans and maxed out credit cards.
I also sent another complaint to the fos for the default they even rejected that and mentioned it’s up to the creditor to apply a default. I haven’t paid and have told them to apply a default and I will arrange a payment plan still they don’t care
Sara (Debt Camel) says
were those decisions an adjudicator decision or a second, Ombudsman-level decision.
Polly says
The unaffordable lending was second ombudsman level decision and it was rejected because of the structure of the drafty loan. They mentioned that it wasn’t a payday loan or something in that line.
The second complain for not applying a default was only at adjudicator. To be honest it was a punch in the face and find the ombudsman useless and didn’t have the energy to go ombudsman. I have paid them probably £50 in 3 years and nothing in 1 year in a £1900 loan.
Sara (Debt Camel) says
CRS are probably collecting on behalf of Drafty, so they haven’t bought the debt.
What is the rest of your financial position like at the moment? Do you have other problem debts? Debts you are not paying?
It is a shame you did not take this case to the Ombudsman as that was your best hope of getting this resolved simply.
You could send a complaint to the ICO saying that your credit record is inaccurate as a default should have been recorded. See https://ico.org.uk/make-a-complaint/data-protection-complaints/data-protection-complaints/.
You could go to court – you would have to talk to a solicitor about that and I do not recommend it.
Anne says
Hi Sara, great article and indeed great website!
I hope that you could clear up some confusion I have regarding the default date and Statute of Limitations:
1) I have read a lot that, generally, the Statute of Limitations begins from “the date that the last payment was made, or written acknowledgment of the debt occurred – whichever is later”. However, I am also seeing mention of the clock starting to tick “from when the default was issued”.
In my case, I have a loan that I was unable to pay, and I ceased payments in June 2020, and have made no payments or acknowledgement of debt since. However, the default was not issued until August 2022. This was not a debt collector, nor does the debt appear to have been sold, but remains with a large High Street Bank as per my credit report.
Am I to assume in my case that the Statute of Limitations begins from June 2020, or August 2022? Those 2 years will of course make a massive difference, and it seems unfair that the bank (purposeful tactics, or not) did not issue a default for that whole period of time through no apparent reason.
2) Do you know of any trends with main banks and institutions in their pursuit of CCJs?
Sorry for all the questions, but thought I would bundle them together and pick your brains in one go! I thank you in advance, and again commend you on your excellent work and help to those of us finding ourselves in unfortunate financial circumstances for many various reasons or another.
Anne
Sara (Debt Camel) says
This article https://debtcamel.co.uk/statute-barred-debt/ looks at the Limitations issue.
But unless you are within a few months of the possible limitations date, this is all pretty theoretical. Banks do not tend to forget about debts.
Very few banks go to court for CCJs unless this is a business debt? They will sell it and the debt collector will expect you to make a payment arrangement or they will go to court for a CCJ. This will often happen in the last 6 months before the 6 year point so the fact you have heard nothing isnt unusual.
Do you think the loan was originally affordable? If you could win an affordability complaint about it, that would remove the interest from the balance and the default from your credit record… but again making the claim would acknowledge the debt. See https://debtcamel.co.uk/refunds-large-high-cost-loans/
You can ask the bank to back date the default as it sounds wrong. But that would acknowledge the debt, restarting the 6 year clock.
Sam says
Hi Sara,
I entered into a DMP a few years ago, everything defaulted apart from 1 thing which is still marked as arrangement to pay. After going to FOS the arrangement to pay account is going to be defaulted and backdated to when I went into DMP.
My position is so much better than when I entered into DMP but I still get declined for even adverse credit products. I understand that the defaults have a negative impact and that impact decreases over time.
Am I right in thinking that a default is a historical record that will impact over 6 years but this account which is still being reported as arrange to pay will make lenders think I am still currently in financial difficulty? I am hoping once they default and back date it to 2019 it will make a difference. I understand I’ll still have bad credit but the way I see things now (and I may be wrong) is that lenders will look at the ATP account and assume that as it is being reported that way currently then I am presently in arrears when the reality is I am not, it was a historical default.
Sara (Debt Camel) says
is there still an outstanding balance?
Sam says
Yes there is
Sara (Debt Camel) says
then the lender will know that you are still in financial difficulty.
Getting a default added back when you started the DMP is not going to improve your credit record now But it will make a big difference to your credit record 6 years after the DMP as all the defaulted debts will drop off. If the debt had stayed at an AP, this would continue to be visible for 6 years after you settled the balance.
So this was a good move by you (incidentally who was the lender?).
But it doesn’t help your immediate problem. Why do you need credit?
How long until the DMP ends? Have you looked at whether making affordability complaints could speed this up? See https://debtcamel.co.uk/tag/refunds/
Kris says
Hi Sarah,
I entered into an agreement with blue motor finance in May 2017, I then hit financial problems and following a notice of default from the company I agreed to voluntary surrender the vehicle in May 2018. There was still a liability on the vehicle which I lost track of due to a house move and bad financial management. I have since matured, and tried to buy a house. When getting my credit report, I noticed that I have missed payments showing from Blue from June 2018 all the way to when I cleared the debt which was March 2022. I have raised a complaint with them because I feel there should have been a default in 2018 with that now showing as cleared, rather than monthly missed payments. There response to the complaint is to tell me that their data is correct , using lines such as, and I quote ‘ you WAS issued a default notice and decided to surrender”.
Is there anything I can do about this, or am I onto a loser straight off.
Sara (Debt Camel) says
is there a default date showing on your credit record? if so, what is it?
is there a balance still showing on your credit record/
The financial problems after the car finance started – do you think they were partly caused by the car finance? and that if BMF had looked properly into your situation in 2017 when you applied, they would have realised the finance was unaffordable?
Kris says
Hi thank you for your response,
There is no default showing at all. which is where I have the issue, because I have effectively 4 years worth of missed payments showing instead. The balance is now showing as cleared from the correct date when I cleared it.
I do feel there is a possibility of affordability with the loan, and yes, I probably shouldn’t have been offered the finance based on my circumstances at the time. I have not pursued this route as 1. I don’t know where to start 2. I accept responsibility for taking the loan and have cleared the debt. I just feel the way my credit file is affected by this is more negative than it needs to be. Had it been defaulted then the default date would be 2018 which is, i think, far nicer than having missed payments all the way up until last year
Sara (Debt Camel) says
If you think the finance was probably unaffordable at the start, I strongly suggest you send in an affordability complaint now. It is important that if the complaint has to go to the ombudsman that that is with 6 years from the start of the finance as that makes it simpler and quicker to get your case looked at. The lender has 8 weeks to replay to you so it is urgent that you do this.
Read https://debtcamel.co.uk/unaffordable-car-finance/ and then use the template in this article https://debtcamel.co.uk/refunds-large-high-cost-loans/. The fact the finance has been repaid does NOT mean that is was affordable. BMF are losing a lot of these complaints, here is a recent Ombudsman decision https://www.financial-ombudsman.org.uk/decision/DRN-3802699.pdf
I think you are right that a default should have been added earlier, but there always seems to be a random element in winning this cases at the Ombudsman. My concern is thatif you try for this route and it fails, an affordability complaint will be more uncertain and slower as it is over 6 years.
Ian says
Hi, I had some provident loans in 2013 that became unaffordable and I missed payments on them. The loans have been written off when provident ceased trading but I’m left with years of missed payments on my credit file. In all the years I never made payments they never defaulted me. I emailed a complaint to them asking if they could add the default but they said I had been making payments so a default didn’t apply to me. The only payments I made were at the start of the loan before I buried my head in the sand. Is there anything I can do to either have them add the default or have the information removed from my credit file?
Sara (Debt Camel) says
Reply saying how long the period was when you were not making payments.
Ian says
I did and they ignored me. I did notice a few years back some ‘mysterious payments’ towards my loans, maybe around £5 here and there so my credit file showed the balance decreasing. These payments were definitely not made by me but I didn’t query them (I thought these mysterious payments would benefit me) I wonder, did provident make it look like I was making payments on purpose so that the account would never qualify for a default therefore making sure I would be negatively affected for as long as possible?
Sara (Debt Camel) says
It is a shame you did not query the payments at the time. I very much doubt Provident did this deliberately. These complicate arguing that you made no payments for many years. Do you know how many there were and when?
Ian says
They were a while ago, I think in 2015/ 2016. I can’t see them on my credit report any more, all I can see is the balance stayed the same from 2017. So there were definitely no payments showing on my account from at least 2017.
Sara (Debt Camel) says
So when did you last reply to Provident about this?
Ian says
June 2022, I asked them to re check the accounts as they would be able to see no payments being made and they never responded. Earlier this month I emailed asking for any all the information they have regarding payments/ balances on each loan but still no response.
Sara (Debt Camel) says
Well that is pretty recently. I suggest you wait until it has been AT LEAST a month and then write to the credit reference agencies saying you think a default should have been added AND you think the balance is showing is wrong, provident are not replaying to your emails about this so you would like the CRA to “suppress” the details. See https://debtcamel.co.uk/correct-credit-records-lender-administration/
It is too soon to do this.
DM84 says
Hi,
I raised a complaint with likely loans for irresponsible lending in 2020 and the ombudsman sided with likely loans.
I went into 3 month arrears in May 2017 so have requested likely loans change my missed payments to a default.
They have responded after nearly 8 weeks by saying the complaint was addressed in 2017.
Is this is an entirely different complaint?
Can anyone advise next steps?
Should I go to ombudmsman and asl for a default tio be applied as they have missed payment markers up to 2019 now.
Sara (Debt Camel) says
are you still in 3 months arrears?
DM84 says
No, I paid the loan in full but have 6 missed payment markers on my file up to 2019.
I think they are referring to a 2nd complaint where I said the repoeting was wrong as I had 6 missed payments added after missing an arrangment to pay.
Is there anything I can do or do I have to wait till 2025 for these marlers to be removed.
I really wish I didnt pay them anything at all.
Its with me longer.
Sara (Debt Camel) says
so what happened in response to your second complaint?
DM84 says
It was reagarding an arrangement to pay which expired after 3 months requiring full payment. I did not realise this and it went back up to otoginal loan amlut which I missed.
They then applied 6 months worth of missed payments.
The ombudsman agreed that they had submitted the correct information to the CRA’s.
I havent asked for a default to be applied till now which is why I am wondering could I consider a fresh complaint or will they try and tie it in with the missed payment/areangement to pay markers complaint?
This loan is the only negative markers on my file (showing as 10 missed payments on clearscore).
Sara (Debt Camel) says
It is a great pity that you did not argue that a default should have been added during that second complaint. you can send this to FOS now but I don’t know if the ombudsman will agree that this is a new complaint.
The good news is that missed payments matter less as they get older. especially when the debt has been cleared.
DM84 says
Thank you for thr response. I raised the complaint in 2020 and didnt want a default but the 6 missed payments markers have hurt my score the same although I managed to get a mortgage nearly 2 years ago so may have been better.
Its just frustrating to look at. I havent anything to lose so will submit a fresh complaint to the ombudsman although it probs wont be resolved for ages even if it did get accepted.
I will try and say it wasnt made clear they would remain on my file for 6 years after settling the account whuch to be honest it wasnt. I had no clue they would stay for 6 years from settled at all.
Thanks again.
James says
Hi Sara,
So working it out today and I will be cancelling 2 loans, 5 credit cards, 3 mobile phone contacts all taken out due to gambling issues.
I don’t know what to do about car it is hire purchase but about £800 per month. My question is I want to eventually buy a house before I am 50, I am 39 just now.
Should I let these go into default then call them and make a plan so it drops off after 6 years? As I am under the impression that if I get put into a payment arrangement or a token payment it won’t drop of my file until 6 years after this is finished.
If I default now, will it drop or my file in 6 years regardless?
Sara (Debt Camel) says
Do you need a car?
What do you mean you will be “cancelling” those debts – you will be stopping paying?
James says
To be honest I don’t need the car I hardly use it. Why with the amount of debt I had was I given a 30k car loan I will never know.
I am solely to blame for the situation I am in with the gambling but better checks should have been done. I took the car and £10k worth of loans in the same month.
As for cancelling I mean stopping the direct debits, what I am trying to understand is if I go to default does that mean they will be removed from my file quicker than if I go into a payment plan.
Sara (Debt Camel) says
so the car – how long ago did you borrow this money? was this HP or PCP where there is a balloon payment at the end?
James says
Hire purchase over 3 years, no ballon payment at the end car is mines once I have finished the payments.
Sara (Debt Camel) says
so are you half way through this HP contract yet?
James says
Not quiet year I am 13 months into a 36 month contract, I do have the option of paying it for the next 5 months then handing it back or selling it.
My thinking is if I have 1 default then why not just have 6 defaults but maybe that’s just where my head is at the now.
Sara (Debt Camel) says
It isn’t only the defaults that matter. It is the hassle of being chased by debt collectors. This car finance debt would be large…
How much do all these debts add up to? I assume the repayments are not affordable for you, but do you have any spare money for making payments after paying bills and essential expenses?
Can you afford to pay the car finance for the the 5 months if you don’t pay the other debts anything? or not reallY?
James says
Yes if I stopped paying the other debts I could afford the car for at least the next 5 months.
If I do that and I don’t pay the other debts just now, I know it’s not the best thing to do but am I best ignoring these debts until I notice them going to default and then getting a token payment or payment plan? Is that the quickest way for it to be dropped off the credit file?
James says
Hi Sara,
I am wondering should I put an affordability claim against SMF and continue paying in the meantime?
Sara (Debt Camel) says
yes because you want to be able to VT the car at the half way point to avoid the default. If you win the complaint that is irrelevant, but you can’t be sure of that.
Sara (Debt Camel) says
Well I really think it’s better to get to the half way point and Voluntarily Terminate the car then and avoid that default and large debt.
You can stop paying the others now or you can offer them a token payment. You will get a lot less hassle if you offer them a token payment and they should still default the debt.
I’m not clear if you are hoping to not pay the debts at all, or start paying them when they are defaulted? If you don’t want to pay them at all, then you should be looking at bankruptcy.
You can also look at making affordability complaints about the debts, see https://debtcamel.co.uk/tag/refunds/ which has articles about the different sorts of debt (including car finance) and one on getting refunds after a gambling problem.
James says
I think you’re right about the halfway point with the car.
As for the debts, I do want to pay them but I want them to be off my credit file in the quickest possible time, am I wrong in saying that if I go into a payment plan, it will not be removed from my credit file for 6 years from the date the payment plan ends? If I let them go to default first then pay them they would be off my credit file quicker, would that be correct or am I looking at this all wrong?
Sara (Debt Camel) says
am I wrong in saying that if I go into a payment plan, it will not be removed from my credit file for 6 years from the date the payment plan ends?
if the payments are low, then you can ask for a default to be added. As the article above says.
but if you don’t mind the hassle, then stopping paying them now may be the quickest way to get defaults added.
Lauren says
HI sara im currently on a dmp and the crediters have marked default for every month ive been paying the dmp, will the default appear every month on my report until its paid off? is it correct that every month states default?
many thank x
Sara (Debt Camel) says
Once a default has been added to a credit record, it will show a default every month until the debt is satisfied. The debt will drop off your record 6 years after the first default.
Only one default is counted in the credit score calculations.
Jon says
Hi Sara,
I have been on a DMP since March 2018 but noticed I’ve got a default in dated April 2021 which I am hoping to get changed. My original debt was with Aqua credit card, Newday, but then got passed to hoist and now to lowell. Who would I contact to get this changed please.
Sara (Debt Camel) says
You should ask Newday to add a default
Forest2003 says
Hi Sara,
I entered a DMP 4 years ago(and I was issued with around 8 defaults) as I had a number of debts left with me after a messy divorce that I was unable to keep up with alone. I have been making regular reduced payments through step change, although affordability has gone down recently. due to the increased cost of living so the amount paid to each creditor has gone down(several months ago) which means that it’s been drawn out to 11 years until they are fully satisfied. I am obviously looking forward to my defaults dropping off my credit file in 2 more years, however, should any of my debts be resold to other collectors or if they just have a change of heart is it possible they could issue a CCJ still despite me continuing to pay the token amount? Am I right in thinking they could issue a CCJ after 5 years and 11 months further dragging the affect on my credit file another 6 years?
Appreciate any insights you can offer
Sara (Debt Camel) says
A creditor can issue a CCJ at any time, even after the debt has dropped off your credit record.
But that doesn’t mean they are going to do this! Once a DMP has been set up, creditors typically just let it run. And a debt collector buying the debt will have paid not a lot for at as it is in a DMP – they too are normally happy to jest get paid the monthly amount even if its small.
They know you are paying as much as you can – going to court doesn’t magically make you have more money.
There are some exceptions here for very large debts if you have a house with a lot of equity. But they are pretty rare if you haven’t had problem in 4 years. Cutting the DMP payments because of the cost of living is very common and isn’t making creditors rush to court.
Is it 11 years from now that you are looking at? or 7 years – which will be 11 years in total?
Forest2003 says
Thanks for the prompt reply :-)
It’s 11 years from now. So it will be 15 years in total.
I did take on a mortgage last year with a 15% gifted deposit so not sure how that would affect anything?
Sara (Debt Camel) says
oh. how long is the mortgage fix? is this with a bad credit lender?
Forest2003 says
The fix is for 5 years(4 years remaining). The mortgage is with Kent reliance. I did have to pay a couple of % higher than the high street lenders at the time, however, it’s probably a better rate than what’s being offered with the hsl now. It’s really the main reason why I’m concerned about tidying up my credit file ready for remortgage time so I can get a competitive fix.
Sara (Debt Camel) says
Oh that’s good.
As I said, it’s unlikely that a creditor will go to court for a CCJ in this sort of situation.
But for a new mortgage from a different lender your DMP will still be a problem even though the debts are off your credit record as the DMP payment will still show on your bank statements.
So you need to try to speed up the DMP as much as possible. Apart from the obvious – trying to reduce your expenses and increase your income – you can also look at:
– making settlement offers to some debts. Especially if they have been sold to a debt collector the creditor May accept 50% or even less. So if you can save up some money this is the best use for it, not increasing the DMP payments.
– affordability complaints. As the debts are getting older, you should do this asap. Read some of the articles here https://debtcamel.co.uk/tag/refunds/ that sound relevant. They will not jar, your DMP. If a deb5 has been so.d, your complaint goes to the original lender.
Forest2003 says
Thank you so much for your advice. Most useful. :-)
Michaela Campbell says
Hi Sara,
We had a secured loan with GE money taken out in 2008. We defaulted in 2011 and never paid anything else.
The debt was sold to Arrow Global and we never made contact with them.
April 2023 our credit report stated a new defaulted loan would appear on our next report.
When we looked it was Arrow Global.
The account stated there were payments made in 2017 for 6 months. We never made any payments to them. The account was closed by them in 2020 but is only appearing now.
I have emailed them but they sent an automated message to say they no longer hold our records.
We are currently trying to get a mortgage but with the defaulted account appearing will not happen.
Is there anything we can do?
Sara (Debt Camel) says
The account stated there were payments made in 2017 for 6 months. We never made any payments to them. The account was closed by them in 2020 but is only appearing now.
I have emailed them but they sent an automated message to say they no longer hold our records.
Is the “them” in this bit GE Money or Arrow?
Do you still own the house which the loan was secured on?
Michaela Campbell says
The “them” is Arrow Global who closed the account in 2020.
We defaulted on the mortgage with Nationwide in 2011/12 and the house was repossessed and sold.
The secured loan was still GE Money at that time
Sara (Debt Camel) says
What do you mean they “closed the account”? Did they write to you and say they would no longer be asking you to pay it? This is unusual for a debt collector so I am interested in exactly what happened.
Michaela says
We received sporadic letters over the years requesting payment but we were advised not to respond.
When the arrow global account appeared on our report it is dated as account open in 2008. Account closed 2020. The years shown are from 2017-2020 and says no data
Sara (Debt Camel) says
ok so to summarise, no one has been asking you to pay this debt you just want it off your credit record because of the mortgage application? Is that right?
This loan should not be on your credit record. A default should have been added when the house was repossessed – as that must have been more than 6 years ago, a defaulted record should now have disappeared.
GE Money no longer exists, so you cannot ask them to correct this.
Do you know the date Arrow Money bought the debt?
Dean says
Hi,
I had a loan and overdraft with Yorkshire bank and stopped making payments on both in early 2015 due to falling on hard times. The overdraft was defaulted late 2015 and has since disappeared from my credit file. The loan however was never defaulted and as such still shows on my credit file as late payment but no payment has been made for 8 years. Can I request them to remove it or could they still default it? Any help gratefully appreciated
Sara (Debt Camel) says
You should ask them to add a default backdated to 6 months after you stopped paying. This will be more than 6 years ago, so the loan will then drop off your credit record.
There is a small risk here that YB will then ask you to start making payments. But this debt is very likely to be statute barred – that is too old to be enforced. See https://debtcamel.co.uk/statute-barred-debt/ and phone National Debtline about this – they have a template letter you could send to YB if necessary.
Ryan says
I am in a Protected Trust Deed (Scotland) and I have a creditor refusing to default my account because of this. They are advising that they can’t because it’s classed as collection activity and defaulting it would put me in a worse position financially anyway.
The account is being reported as 6 months in arrears with that number increasing monthly on my credit file. I’ve requested them to default it to the end of January which is the date my Trust Deed was signed so everything would fall off together but they are refusing to co-operate and are still insiting it’s a no.
Can you advise what is the best thing for me with this one?
Sara (Debt Camel) says
I suggest you ask in the comments below this article https://www.advicescotland.com/home/protected-trust-deed/ on a Scottish debt website.
Mr B says
I am in the process of taking Lowell to a court hearing listed for end of June.
Original Lender had default recorded as December 2016, Lowell despite them producing evidence from the original lender that this was the case, and original lender issuing final response that this was correct, Lowell registered the date as July 2017, refusing repeated requests to comply with Article 5 (1) (d) GDPR, the right to rectification.
They are defending the claim, however out of principle am proceeding with the claim.
Wish me luck!
Sara (Debt Camel) says
Gosh.
Did you try going to the Financial Ombudsman first?
Dan says
I have a default that has been registered since August 2019. Initially, the account was opened sometime in 2013. I have done some digging to establish when I last made payment, and I have an email receipt dating October 2018, and I have corresponded this payment with my bank statements. The default has been added 10 months after and I am thinking of writing to them to change the date. Should the default date be 3 months after I last made payment (making it January 2019)? Would there be any negative effect in writing to them to ask them to change the date, I am wary about “resetting the clock”. If it makes any difference to the advice; I have recently paid the default in full in March this year 2023. Many thanks.
Sara (Debt Camel) says
is a default on a current account? or a loan or credit card?
have you been making any payments to this debt?
Dan says
Thank you for the reply. It was credit from a online ‘catalogue’ website. The last payment made prior to the default was in October 2018. Default registered August 2019. I recently satisfied the default by paying in full in March 2023. Thank you.
Sara (Debt Camel) says
Acording to the SCOR rules, a default should be added when you are 3-6 months in arreas. 6 months would be April 2019. You can ask for the default to be backdate to then, there is no negative affect from requesting this.
As the debt is settled, the question of “resetting the clok” is irrelevant – that is a phrase that only matter when you haven’t paid anything for many years and are hoping the debt may become statute barred.
Sharon says
Hi, I have two provident loan accounts both showing with Experian and Trans. First taken out Feb 18 and second May 18. I defaulted on both, but no default was reported with CRAs. I asked Provident to default both in 2018. I’ve just looked at both credit files. Provident have defaulted both accounts but where the were missed payments 6,5,4,3,2 etc there are now just lots of Ds. My credit score has fallen to very poor on both. Should there not just be one D on each as I did make payments after default?? For many months in fact. I have raised disputes with both CRAs but would like your advice. The loans will fall off next year but is what they have done correct? Thanks x
Sara (Debt Camel) says
This is normal. Once a default is added the record will show a D every month. But this only counts as a single default for credit scoring.
So the default date is in 2018? And that was when you missed Payments first?
Did you make a claim to the Provident scheme?
Sharon says
Thanks for you reply that makes sense now. Yes I did claim but my complaint was not upheld and I did not appeal. I understand there is nothing I can do now? Both defaults are September 18 so not too long to wait until accounts fall off x
Mrs T says
Hello, when I was much younger I got into trouble with payday loans and I unknowingly got a CCJ for £300. I hadn’t received any paperwork relating to this this and I wasn’t aware I had it until six months later, then it was too late to dispute so I settled the payment and tried to wish away the next five and half years until it was removed. The CCJ was applied 29th August 2017 and I’m so relieved August 2023 has finally arrived for it to be removed…. However when I checked this morning it’s still there!!!
Have you any idea when this will be removed, will it be the end of August? Do I need to do something to push it along? Thank you
Sara (Debt Camel) says
A CCJ will drop off 6 years after the judgment date – so that will be the end of August.
PD says
Hi Sara
I have a default falling off my file later this month after 6 years.
Will this still be visible on a credit search as I never made any payments to it? Or will it be removed completely?
I need to apply for a mortgage and have been purposely waiting for this to fall off and I’m now getting nervous it’ll still somehow show.
Sara (Debt Camel) says
It should be removed completely.
But you need to be sure you do not apply for a mortgage to a lender that is part of the same group as the defaulted debt, as they may be able to see the problem from their internal records. So not to Halifax if you defaulted on a Lloyds loan.
PD says
Thank you Sara. It’s not with bank it was for a car through First Response Finance. I cannot see they are affiliated with any banks. Fingers crossed 🤞
Guppy says
Hi
I couldn’t make payment of £180 in July 2023 so I arranged to pay £50 a month for 3 months on a payment plan directly with 118 118 loan. They have now sent me a default notice on 8th September 2023 asking to pay the outstanding balance by 29th September 2023. What should I do?
Sara (Debt Camel) says
I assume you can’t easily pay the outstanding balance.
Do NOT take out another high cost loan to pay this. That way piles interest on interest, madness.
You could ask 118 to continue the payment plan.
You could also look at whether you should make an affordability complaint to 118. See https://debtcamel.co.uk/refunds-large-high-cost-loans/. If you win one the interest will be removed so you only have to repa what you borrowed and your credit record will also be cleaned. Send this to the Ombudsman if 118 rejects it as you know this debt has caused you problems.
NB making a complaint is in addition to a payment arrangement. It doesn’t resolve your immediate problem.
Do you have other problem debts as well? Normally by the time someone takes one of 118s horribly expensive loans they also have a lot of other debt.
Rebecca says
Hello, I defaulted on my MBNA credit card in April 2021 which was then sold on to PRA Group. I’m trying to clean up my credit file prior to applying for a mortgage and can see that I have both a default from MBNA and PRA Group both from April 2021. Should I have 2 defaults from the same debt as this is making my credit file seem worse than it is?
Sara (Debt Camel) says
Yes this is normal. Only one of the defaults is counted for credit scoring.
Have you repaid this debt? When?
Did MBNA increase your credit limit when you were only making minimum payments? So it was too high to be manageable? If they did, read https://debtcamel.co.uk/refunds-catalogue-credit-card/. If you can win an affordability complaint, both defaults will have to removed. You complain to MBNA as they made the poor lending decision
Rebecca says
Thank you! Yes this was paid off over a year ago 😊 I do also have another query regarding another unsettled default of mine… Tesco bank sold my debt to link financial, I received a letter notifying me in July. Neither of these accounts are on my credit file now including the original loan from Tesco bank (which was on there until July showing as defaulted). Just wondered if this was normal? It’s like the original loan never happened which is so strange! So say this gets added the same way the MBNA/PRA Group one did, does that mean I have 4 defaults or 2?
Sara (Debt Camel) says
Have you checked credit reports from all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Rebecca says
Hi Sara,
Yes I’ve used check my file and neither of the accounts are showing on there!
Sara (Debt Camel) says
Ok, don’t forget to cancel check my file before they start chrging you – you can get all this information for free
I don’t know why the Tescos has dropped off. Link may just be slow in adding this. But all these debts need to be settled well before a mortgage application. That is much more important than your credit score.
Matt says
Hi Sara,
I have a debt on my report with Drafty from Oct 2016, which was reported as fraudulent, they stopped chasing payment but never removed the debt. Drafty never posted a default but did carry on adding missed payment markers until March 2020, when they’ve closed the account as partially settled.
I’m looking for the easiest way to remove those missed payment markers now the debt is barred anyway as I’m hoping to apply for a mortgage (I assume the partially settled account that’s still on my report will have an impact?) Would contacting them to request they add a default of April 2017 be the best course?
Sara (Debt Camel) says
So they never contacted you after 2017? Not even in 2020 to say they were closing the debt as partially settled?
Matt says
Sorry for the delay.
Thats correct, as far as I remember they haven’t contacted me since.
Shanna says
Hi Sara, I missed payment’s with Vodafone From Jan 22 as i couldn’t afford to pay at the time. The account was taken over by Lowell in March 2023 and defaulted on my credit file May 23. Lowell state they didn’t default the account Vodafone did but on my credit report it’s under Lowell not Vodafone. Do i have the right to have that default date amended to 6 months after the 1st missed payment (July 22) and is it Lowell i dispute it with or Vodafone? Thanks
Sara (Debt Camel) says
Ask Vodafone to add an earlier default – Lowell will then have to use that.
What is the rest of your financial situation like?
Shanna says
I had only renewed my contract in the Dec 2021 so one month before but I fell behind on both the contract and device plan due to financial sturggle at the time ending up with x2 defaults for both. So i had the new contract for one month and x2 sums of £740 and £930. I had missed a few phone bills previous to taking out the new phone and contract also. It was due to end and I foolishly upgraded.
Sara (Debt Camel) says
I was asking in case you had other problems debts ag credit cards, loans, catalogues , or if you are behind on any household bills. If you are, then sorting out this default date is less important that getting a plan in plan for your whole situation.
Shanna says
No it was just this and one with Amigo that has since fell off my report. Both we’re affecting my eligibility for a mortgage but the date of this is still affecting me but if it was the May 2022 it wouldn’t if that makes sense.
Sara (Debt Camel) says
That is still a very recent default in May 22. It will still make it harder to get a mortgage.
But give this a go.
Jessica P says
Hi, I took out a salary loan in 2018 and made payments through my salary until mid 2019. I then left my job and they were due to take payment via a direct debit , but never did. I manually made a couple payments but received notifications that they were going to renew the direct debit, by crediting and debiting £1 which they did however they never took the monthly payment. It was recorded as delinquent,. I recently received a letter from them apologising that they had not sent me a sum of arrears in a few years which was their error so they credited over £500 to the outstanding balance. Looking at my credit report it states between sept 2019 and Feb 2020 no payments were made and they they stopped reporting it until Jan 2023. From Feb 2023 my report states that payments were made up until August this year, which is untrue. In September it was marked as a missed payment. It’s never been defaulted and Ive never been chased for money. The account dashboard has the monthly payment expected as zero so the communication of what is expected of me has been poor. Ive asked them to remove the the negative markers as the last 3 years no payments have been taken. My question is can this be changed on the credit report due to their errors? Should i be requesting the default is added from 2019 or no? Are there any other queries i could throw their way in terms of the way the loan was managed?
Thanks
Sara (Debt Camel) says
who is the lender?
how large is the remaining balance? How much were you supposed to pay a month?
what are the rest of your finances like at the moment?
Jessica P says
It was salary finance, £5000 remaining from 8k rest of finances are ok one default from 2019, I’m not sure what the monthly was i think its was £200-300
Sara (Debt Camel) says
I think you are right to ask for all the negatiuve marks to be removed as it was their fault they did not collect the monthly payments. and they never contacted you about this.
Paul says
I can’t find an answer to this at all, so I’d be grateful even if someone says “there’s nothing you can do”.
In short, an excess mileage charge following VT (which I was advised by BMW wouldn’t happen in the event of a VT), was picked up by a solicitors who tried to pursue me for the charge.
I haven’t paid a penny of it (please don’t judge without knowing the pretty dreadful circumstances), but, I presume, Alphera Finance have deliberately not defaulted the account so (again, I presume), the account continues to damage my credit rating. It has destroyed it, tbh.
Rather than default the account, they have recorded missed payments every month for 6 years and 2 months (to date). They have recorded missed payments that predate the VT, which is obviously incorrect information.
Firstly, can they do this within FCC guidelines, as it seems unethical, and will the debt remain live as long as they mark missed payments on my credit file?
Sara (Debt Camel) says
“FCC guidelines” only apply in the US. Can I check you are in the UK?
Kay says
Hi Sara, I have a debt that ended up as a CCJ. The default happened in September 2017, but the CCJ was issued in June 2018. On what date will this debt become inactive, if any? I have not been able to pay towards this debt due to a very messy divorce, my son’s disability, and my own disability related to mental health.
I am trying to get debts cleared and have paid some small ones, but I won’t ever be able to clear the CCJ. When / will I ever be free from it?
Thanks
Sara (Debt Camel) says
The CCJ will drop off your credit record in June 2024. But that does not mean it is “inactive”.
Are you being asked to pay the CCJ at the moment? Can I ask how large it is?
Are in renting, social or private?
How large are your other debts?
Ben says
Hi Sara
I went on a DMP in Jan 2018, I had six credit accounts, three of them were defaulted within 3 months by April 2018 and one some 10 months later. I’ve since gone to FOS for the one which recorded the default late and they have made it in line with the others (so all 4 defaults now have the same date). I have since settled all the accounts in full ahead of the DMP end date after finding myself in a much better financial situation
However, two of the credit accounts (a credit card and a catalogue order company) never recorded a default at all and instead just included missed payments of up to 8 months (even if they were being paid through the DMP). This is fairy annoying as whilst all of the defaults will drop off by April/May of next year, the missed payments will continue to show until September/October on my credit reports. I’m planning on applying for a mortgage next year, so I really want a clean credit file by June latest.
Should I write to the two companies that didn’t default the accounts and asked them to do this now? I know my credit score will take a dip but if they default these two accounts in line with the four others, they will all drop off together by April next year.
Any thoughts?
Thanks
Sara (Debt Camel) says
what date were these debts settled on?
Ben says
Hi Sarah. I settled all the debts in May 2021, just over 3 years after I went on the originally 6 years DMP. The two debts that weren’t defaulted will have missed payments recorded on my credit file until Sep 2024, my defaults will drop off in April 2024
Sara (Debt Camel) says
you do not normally need a completely clear credit record to be offered a mortgage by a high street lender on ok rates.
By June next year, these payment arrangements will have been settled for more than three years. I suggest you talk to a mortgage broker now and ask if that will be sufficient.
Yes, you can ask for a default to be added. The SCOR reporting rules say a default should be added when you are 3-6 months in arrears. If they are added after 6 months, then the debts will still be around after April 2024 for a few months.
kris maddox says
Hi, I am currently battling blue motor finance. I had a vehicle with them which i surrendered due to financial issues in may 2018. I was a bit daft and didn’t realise there was still a debt to be paid. I discovered in 2002 that BMF had been placing late payment markers on my file for 4 years. My understanding is that this debt should have been defaulted in late 2018. meaning it would effectively drop off my file this year. I have complained to BMF and got nowhere. I have also raised a complaint with the FCO, which the initial response was that they felt the late payments running until 2022 were fair and no more detrimental to my file than a 2018 default. I have progressed this claim to an ombudsman and am yet to receive a reply. (6 Months) . Am i completely naive to persue this or do you think I should/can continue with this?
Thank you in advance for any advice at all that you can give me.
Sara (Debt Camel) says
I think the ombudsman should uphold your claim.
FOS decisions on credit records can be a bit random, but this is worth pushing as far as you cam
ADAM HAYES says
hello, i’ve got a default on my credit report from Cabot. Its for an overdraft with First Direct which I refused to pay off after they suddenly withdrew the facility in 2017 after having it for nearly 10yrs and insisted I had to pay it in full, which was not possible, or reasonable. Its for £4,600. They shut down my accounts and sold the debt to Cabot who have been chasing me for it on a regular basis with calls and letters. I had been a customer with FD since 1995 so was one of their first. To be treated that way really got to me which is why i refused to pay it. I have never responded to Cabot. Unfortunately this has scuppered my application for a remortgage today, the reason being the default is dated 5feb2020 or ‘updated” to that date on my report. So, if I accept that date then I either have to wait 2 more years before it drops off or I request FD to backdate the default to whenever it occurred which would mean it drops off immediately. However I’ve read in your notes that it may be better to wait as contacting may reset the date. My age is probably a factor, I’m 57 in April. Let me know what you think I should do.
Sara (Debt Camel) says
Your remortgage – was this with the same lender? Do you need to borrow more or just get a new fix?
and who is the lender – if it’s HSBC you have problems any way around
ADAM HAYES says
same lender, asking to borrow more to consolidate plus a bit more for renovations
Barclays, I have been with them since 2014 I think
Sara (Debt Camel) says
First it is incredibly foolish to ignore a debt like this. Debts do not vanish. Even if you can get the default date backdated – and as the quote in the article above says, the rules about adding default debts are less firm for current account snd day a loan or credit card – Cabot may will go to court for a CCJ if you do not settle this debt.
You could try arguing FD behaved unreasonably in 2017, however this is more than 6 years ago and FD may simply reject this complaint. the Financial ombudsman can choose to look at older complaints however there doesnt seem to be a good reason why you did not complain sooner and in any case the timescales for this would be prolonged and not compatible with a remortage soon.
Do you have other debts that you want to consolidate? How large?
ADAM HAYES says
Ok agreed. Foolish and paying for it now. Accepted!
I have a 2nd mortgage with Shawbrook, about £50k. They have told me they will upping the interest rate at the end of march which will cost about £110 extra per month, currently paying £502, will go up to £613, No other debts apart from the default
Sara (Debt Camel) says
If you just get a new fix on the current mortgage, what will your finances be like – will you be able to afford the new mortgage and the higher rate on the second mortgage?
ADAM HAYES says
I’ve already done that. So, yes I can afford it, I can also maybe pay a bit of the 2nd mortgage off as I get a bonus at the end of the month. But should just leave the Cabot thing to run its course?
Sara (Debt Camel) says
Running its course will likely end up with you getting a CCJ… you need to make. a monthly payment offer or a settlement offer.
R King says
Question, what are the rules with Utilities’ reported defaults? I missed 2 payments last year Sept / Oct. Reinstated Direct debit with my water company and paid. Unfortunately due to January being an expensive month with bills my January direct debit bounced. They have now sent to collections and reporting a default but the default date is in the future (25th Feb 2024 we’re only on the 15th now!).
Do missed payments have to be continuous or do they just total missed payments over the year? I have contacted them since and set up payment plan so from missed direct debit to now setting up payment plan i’m sure its only been a month!
Sara (Debt Camel) says
Did you clear the 2 months in arrears you were at after missing the October payment?
R King says
I re set up the direct debit with Southern Water, wasn’t asked to clear arrears just started paying again on the account if that makes sense.
Robyn1234 says
Hi There,
My boyfriend and I are looking to get a mortgage very soon. He has a default on his record that will be removed in March 2024. One of his credit reports it says March 8th others just has March 2024. I just wanted to know if we walk into a bank on March 9th will this default still affect his rating or will be just be deleted like it was never there?
Sara (Debt Camel) says
Have you checked what the default date is on the statutory credit reports for each credit reference agency? See https://debtcamel.co.uk/best-way-to-check-credit-score/
Robyn1234 says
Hi Sara,
Yes this is what they all say:
Equifax: closed 8 March 2018, reported until March 2024
Eperian: closed 8 March 2018, reported until April 2024
Transunion: reported until March 2024
Sara (Debt Camel) says
Eperian: closed 8 March 2018, reported until April 2024
that is what the Experian statutory credit report says? or some other credit report?
Robyn1234 says
All that information was from ‘check my file’ which shows the breakdown of what all 3 say (Equifax, Experian & TransUnion). If we just go onto Experian he has a 987 excellent rating.
Sara (Debt Camel) says
Well you can either wait until check my file says they are all gone or check the individual statutory reports from each of the CRAs. These are free and will have a default date against the debt.
PS talk to a mortgage broker, don’t just walk into a bank!
Robyn1234 says
Hi Sara,
Thanks for your advice, yes we have a mortgage broker. I will check CRA’s for all the dates.
Laura says
Hi Sara, you e previously helped me a few years ago with advice about unaffordable loans/credit cards and I had great success with FOS complaints, but I’m now trying to get my credit in order and think about applying for a mortgage. I’ve used the one month free with check my file and can see that an old debt (still within 6 years) was marked as defaulted. The debt is now paid, after being sold to a debt collector.
According to my check my file report the default date recorded with trans union is 31 October 2018 and satisfied in May 2019 but with equifax it doesn’t show until Dec 2020. The debt had been paid by this point.
The lender was originally safety net credit who are now in administration but the 2 years difference seems huge. Is there anyway of getting this corrected and who do I contact? Any advice is greatly appreciated as I dig out of a hole that a younger, naive me got into.
I can’t find any old emails or paperwork to confirm
Sara (Debt Camel) says
when was the loan sold to the debt collector?
Laura says
It was sold towards the end of 2018, October time from the limited paperwork I have.
Sara (Debt Camel) says
so that would square with the dedfault date of 31 october 2018?
You can ask the debt collector to change equifax to have the same date.
If you want the default date set before the date the debt was sold on both of them, you need to ask the administrators to do this.
Laura says
Thank you Sara. Really helpful as always.
I will ask the administrators to amend the dates. To the original default date making it clear I am not disputing that I was in the position I was in, but that the records need to be accurately reflected
Sara (Debt Camel) says
sorry what was the original default date?
jacky says
Hi. You are doing great work!
One of my lenders are American express and i heard that they only put default notices after a few years of being in a DMP.
When going into a DMP does a lender need to add a default within 60 to 90 days of going into the DMP?
If they do at a letter date, lets say 2 years later, can i request them legally to change it back to when the DMP started? Can they refuse?
If they dont add a default notice just AP marker can i legally request them to put a default from when the DMP stearted? Can they refuse?
Thanks Jacky
Sara (Debt Camel) says
There is no requirement to add a default within 60-90 days. See https://debtcamel.co.uk/dmp-credit-rating/
But one simple option if you think one of your lender will be difficult is to stop paying for a couple of months before a DMP.
jacky says
Thanks.
“But one simple option if you think one of your lender will be difficult is to stop paying for a couple of months before a DMP.”
What will this help?
Sara (Debt Camel) says
It will start accruing arrears. And make them more likely to add a default sooner.
jacky moiman says
Thanks.
I have already missed payments on a few lenders, and gotten a default notices from a few of them included one from American express, should i wait and first default and then make a DMP or not wait and do DMP now?
I am asking regarding all my lenders and about American express.
Sara (Debt Camel) says
so you have already had a default notice from Amex? And you havent paid them anything after that? It sounds as though you should talk to StepChange now about a DMP.
PS never go to a firm that charges for a DMP!
Jacky says
Wondering, if defaulted and then gone into a DMP, will have it have the same affect on my credit report, coming off after 6 years, or it will be a AP marker on the file?
Thanks.
Jacky
Sara (Debt Camel) says
if there is a default on your credit record, it doesnt matter what happens after that, the default will remain and the record will be detailed after 6 years.
having stopped paying before the DMP means your account will get to the 3-6 months arrears sooner in a DMP, so a default should then be added.
SLH23 says
Hi Sara,
I need your wonderful advice again.
I have managed to partially settle a debt and close my account with Cabot financial. Looking on my credit file it states a default dated 10.05.2018 with Cabot. Looking through my statements I started paying advantis credit in July 2018 and then wescot in Jan 2019 which then transferred to Cabot in July 2020. I have paperwork to confirm the change over from wescot to Cabot but I am unable to locate anything regarding Advantis and have received no form of communication from them since 2018 but I am still paying a monthly payment. As I only transferred to Cabot in 2020 yet the default is from 2018 is it likely/possible the default was originally applied to my file by Advantis and they sold it to wescot and then Cabot which is why the default shows as Cabot?? Hope this makes sense. I am really confused 😐!!
Thanks in advance.
Sara (Debt Camel) says
so you think a debt that you are still paying to Advantis was sold to Cabot and settled there?
Emily says
My default is coming up to 6 years next month so it will go from my credit report , it is for a loan, I pay a monthly repayment to Cabot. Will I need to continue paying this once it has fallen off my credit report. Or will Cabot close the debt?
Sara (Debt Camel) says
You need to carry on paying, see https://debtcamel.co.uk/debt-not-on-my-credit-file/
Caoimhe says
Hi Sara
I have 3 years of missed payments from ArgosCard. I am certain that at one point my account was with a collections agency such as Moorcroft and then returned as a plan wasn’t set up. Since then argos have just added a missed payment each month. Am I within my rights to request that a default be added for a date 3 to 6 months after a first missed payment? Or is there anything I can do to try and repair my credit as we are hoping to do F&F settlements and clear everything over the next few months to buy a house soon. The other defaults are over 3 years old but obviously this series of missed payments is going to have a worse impact as it is more recent. Thank you
Sara (Debt Camel) says
Am I within my rights to request that a default be added for a date 3 to 6 months after a first missed payment?
Yes. At that point Argos will expect you to set up a payment arrangement.
Clearing the defaulted debts with a settlement offer is a good idea. A recently settled default will still make it hard for you to get a mortgage at an OK rate for a year or two, but that is a reason to settle them as quickly as possible. If you hope to get a mortgage soon, I suggest you should urgently talk to a broker about your options.
Kc says
Hi Sara
I have a question, I had a default with barclays credit card around 8000 pounds and it was settled with collection agency hoist last year January 2023 also default was dropped off from my credit report in January 2023 itself as it was defaulted in January 2017.
My question is if I want to go for mortgage with barclays bank will I get mortgage deals as I have cleared my defaults and my credit score is in good condition.
Thanks
Sara (Debt Camel) says
I don’t know the details of what Barclays would check when you apply for a mortgage. But from their internal records that would be able to see the Barclaycard problem even though it is no longer on your credit record and no payments would show on your last 6 months of bank statements.
I see no reason to take the risk of them checking and rejecting you. There are a lot more mortgage lenders lour there, pick a different one or, even better, go through a mortgage broker and explain this past problem.